Inkal co. was formed on january 1, 2017 as a wholly owned subsidiary of a us corporation. sinkal's functional currency was the stickle (§). the following transactions and events occurred during 2017: jan 1 sinkal issued common stock for §1,000,000 june 30 sinkal paid dividends of §20,000 dec. 31 sinkal reported net income of §80,000 for the year exchange rates for 2017 were: jan 1 §1 = $.48 june 30 §1 = $.46 dec. 31 §1 = $.42 average §1 = $.44

what was the amount of the translation adjustment for 2017?

It would decrease the net assets by $60,800

Explanation:

The computation of the translation adjustment for 2017 is shown below:

For common stock

= Issued amount × (revised exchange rate - exchange rate)

= $1,000,000 × (0.42 - 0.48)

= -$60,000

For dividend

= Dividend paid × (revised exchange rate - exchange rate)

= $20,000 × (0.42 - 0.46)

= -$800

For net income

= Net income × (revised exchange rate - exchange rate)

= $80,000 × (0.42 - 0.42)

= $0

So, it would decrease the net assets by $60,800 ($60,000 + $800)

answer founder's agreement;

answerbland allison silver purchase act);